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Shell (RDS.A) Q2 Earnings Crush Loss Estimate, Sales Plunge

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Reports Earnings: Europe’s largest oil company Royal Dutch Shell plc (RDS.A - Free Report) reported earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of 16 cents. This compares with the Zacks Consensus Estimate of a loss of 31 cents.

Estimate Revision Trend & Surprise History: Notably, the Zacks Consensus Estimate for bottom line was revised 6.9% downward in the last 7 days.

Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate on two occasions and missed in the other two, the surprise being 7.13%, on average. This is shown in the chart below:

Royal Dutch Shell PLC Price and EPS Surprise

Royal Dutch Shell PLC Price and EPS Surprise

Royal Dutch Shell PLC price-eps-surprise | Royal Dutch Shell PLC Quote

Revenue Plunges: Revenues of $32.5 billion were 64.6% below the second-quarter 2019 sales of $91.8 billion.

Key Stats: Upstream segment recorded a loss of $1.5 billion (excluding items) during the quarter, compared to the profit of $1.3 billion (adjusted) achieved in the year-ago period. Shell’s upstream volumes averaged 2,415 thousand oil-equivalent barrels per day (MBOE/d), down 7% from the year-ago period. At $24.31 per barrel, the group’s worldwide realized liquids prices were 60% below the year-earlier levels while natural gas prices were down 24%.

In the Oil Products segment, the Anglo-Dutch super-major reported adjusted income of $2.4 billion, 89% more than the year-ago period.

The Integrated Gas unit reported adjusted income of $362 million, down 79% from the $1.7 billion in April-June quarter of 2019.

Meanwhile, the Chemicals segment recorded a profit of $206 million (excluding items) during the quarter, up 56% from the $132 million (adjusted) achieved in the year-ago period.

The oil major’s operating cash flow slumped 77% from the year-earlier level to $2.6 billion.

Zacks Rank: Currently, Royal Dutch Shell carries a Zacks Rank #2 (Buy).

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Royal Dutch Shell earnings report later!

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